Supervalu refinances $1.5 billion senior secured term loan agreement

By Michael Johnsen

MINNEAPOLIS — Supervalu on Thursday successfully completed the refinancing of its existing $1.5 billion senior secured term loan agreement. The amendment reduces the interest rate margin from 5% to 4% and reduces the LIBOR floor from 1.25% to 1% for LIBOR based loans.

The amendment also expands the ability to increase the term loan, subject to a secured leverage test, by up to $500 million. The maturity date of the term loan remains March 2019. Since the term loan was refinanced within the first year of its inception, the company paid the existing term loan lenders a 1% refinancing premium per the terms of the loan agreement.

Credit Suisse and Goldman Sachs Bank USA acted as joint lead book-runners and joint lead arrangers while Morgan Stanley, Bank of America Merrill Lynch and Barclays acted as co-managers on the amendment.

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